It comes less than six months after Mr Cameron’s Government warned that the approach will hit buy-to-let landlords and lead to higher rents.

However Mr Hammond’s room for giveaways is likely to be hampered by official forecasts expected to show that the UK faces an additional deficit of up to £100 billion over the next four years in the wake of the Brexit vote.

Philip Hammond, the Chancellor

In other announcements:

The National Living Wage will rise from £7.20 an hour to £7.50 from April 2017, with stronger enforcement to ensure people are paid the minimum.

An extra £1.4 billion will be spent on delivering an 40,000 affordable homes, with the Government also expected to announce plans to enable renters to buy their own homes.

Fuel duty will be frozen, while the Government is also considering cuts to air passenger duty and new childcare subsidies.

More than £1.3 billion will be spent on improving Britain’s roads with a focus on reducing congestion.

Job perks enjoyed by millions of middle earners, including health checks, gym memberships and mobile phone contracts, are likely to be scrapped.

Cutting the amount of in-work benefits claimants can access was a key plank of Mr Cameron and Mr Osborne's welfare reforms.

Currently claimants lose 65p worth of Universal Credit, one of the Government's flagship benefits, for every pound they earn once they find a job.

Today Mr Hammond will announce that he is changing the threshold to 63p - meaning that people will be able to keep more of their benefits while in work.

The issue of benefits cuts has led to divisions within the Tory party. In the 2015 Budget after the General Election, the then Chancellor George Osborne sparked a backlash from Tory MPs after announcing a series of cuts.

The rebellion forced Mr Osborne into a reversal on some of his cuts but plans to reduce Universal Credit - a single payment which replaces six benefits - remained.

Iain Duncan Smith, the former Work and Pensions Secretary, quit Mr Cameron’s Government over the cuts and has been leading calls by Tory MPs for Mrs May to ease their impact.

Mr Duncan Smith said that he was “over the moon” about the decision to invest more money in Universal Credit, which will increase the earnings of more than three million working families.

He said: “This is very close to my heart, I unreservedly welcome it. It’s not everything but it’s a very good start, it’s about putting money back into Universal Credit and making sure that work pays.”

However the Chancellor will not push ahead with more radical proposals to reverse cuts to Universal Credit entirely, which would have cost around £3 billion.

It will be seen as a victory for Mr Hammond, who has cautioned heavily against against too many giveaways amid concerns about the scale of the economic challenge after Brexit.

The Government’s decision to ban fees charged by letting agents is likely to prove controversial. Mr Hammond will argue that the ban will save millions of renters from having to pay up front charges of £337 on average and bring down overall costs.

However the policy was strongly opposed by Mr Cameron’s Government, which in May said that it would not reduce the levels of rent.

It said: “Banning or capping letting agent fees would not make renting any cheaper for tenants—tenants would still end up paying but through higher rents—which is why the Government believe that ensuring full transparency is the best approach.”

The National Landlords Association warned that the decision to ban fees will “boomerang” back on tenants.

It said: “A ban on agent fees may prevent tenants from receiving a bill at the start of the tenancy, but the unavoidable outcome will be an increase in the proportion of costs which will be met by landlords, which in turn will be passed on to tenants through higher rents.”

The Chancellor will emphasise that economic stability is the best way to ensure that “everyone feels the full benefits of an economy that works for everyone”.

The official forecasts by the Office for Budget Responsibility are likely to prompt a row with Conservative eurosceptics. They have warned Mr Hammond that he will be making a “huge mistake” if he endorses “nonsensical” figures suggesting that Britain’s economic growth will collapse.

Mr Hammond was handed a boost on the eve of his inaugural Autumn Statement after it emerged that the Government borrowed £4.8 billion less than expected last month.